Helena, Montana 59601

Phone/Fax 406-443-2370

February 28, 2007

LOBBYIST ACTIVITY REPORT

2007 LEGISLATIVE SESSION

WEEK EIGHT

(February 18, 2007 – February 24, 2007)

During Week Eight of the 2007 Legislative Session, provided testimony on the following bills:

HB 598: "AN ACT REVISING THE TAXATION OF CERTAIN OIL AND NATURAL GAS PRODUCTION; DECREASING TO 6 MONTHS THE REDUCED TAX RATE PAID BY WORKING INTEREST OWNERS ON QUALIFYING OIL AND NATURAL GAS PRODUCTION FROM PRIMARY WELLS AND FROM HORIZONTALLY COMPLETED WELLS; PROVIDING THAT OIL AND NATURAL GAS PRODUCTION TAXES PAID BY CERTAIN WORKING INTEREST OWNERS ON PRIMARY PRODUCTION WELLS AND HORIZONTALLY COMPLETED WELLS ARE DISTRIBUTED FOR A CERTAIN PERIOD OF TIME TO CITIES, TOWNS, AND COUNTIES FOR ROAD IMPROVEMENT PROJECTS AND OTHER TRANSPORTATION PURPOSES; PROVIDING A STATUTORY APPROPRIATION; AMENDING SECTIONS 7-7-110, 15-36-303, 15-36-304, 15-36-331, AND 17-7-502, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE." This purpose of this proposed legislation is explained in the title of the bill. In addition to decreasing to 6 months the reduced tax rate on qualifying oil and natural gas production, thus creating more tax revenues, it would also change how those increased tax revenues are distributed to cities and counties throughout the state. Some of the new criteria for distribution of these additional tax revenues are listed below. Please note that this list is not all-inclusive and is only a summary. This list provides a general idea of how the additional tax revenues would be distributed.

(1) Forty percent of the amount determined under . . . must be distributed to each county in the state as follows:

(i) 40% in the ratio that the rural road mileage in each county, exclusive of the national highway system and the primary system, bears to the total rural road mileage in the state, exclusive of the national highway system and the primary system;

(ii) 40% in the ratio that the rural population in each county outside incorporated cities and towns bears to the total rural population in the state outside incorporated cities and towns; and

(iii) 20% in the ratio that the land area of each county bears to the total land area of the state.

(b) Sixty percent . . . must be distributed to each incorporated city and town in the state as follows:

(i) 50% in the ratio that the population within the corporate limits of the city or town bears to the total population within corporate limits of all the cities and towns in Montana; and

(ii) 50% in the ratio that the city or town street and alley mileage, exclusive of the national highway system and the primary system, within the corporate limits of the city or town bears to the total street and alley mileage, exclusive of the national highway system and primary system, within the corporate limits of all cities and towns in Montana.

I provided testimony in opposition to this proposed legislation due the potential adverse impacts it could have on the economy of Richland County and the associated jobs and tax base.

SB 484: "AN ACT AUTHORIZING THE COLLEGE OF TECHNOLOGY OF MONTANA STATE UNIVERSITY-BILLINGS TO CONSTRUCT A REGIONAL WORKFORCE TRAINING FACILITY; RECOMMENDING A SOURCE OF FUNDING FOR THIS FACILITY; AND PROVIDING AN EFFECTIVE DATE."

This proposed legislation would authorize the construction of a workforce training facility in Billings at the MSU-B College of Technology. A trained workforce is essential not only for local and regional economic development, but also to provide opportunities for workers to improve their work skills and for increasing their incomes. I testified in support of this proposed legislation.

SB 473: "AN ACT ENCOURAGING THE MONTANA PRODUCTION OF GASOHOL AND DENATURED ETHANOL; CLARIFYING THE LICENSE TAX RATE FOR GASOHOL OR GASOLINE BLENDED WITH AT LEAST 10 PERCENT DENATURED ETHANOL; REPLACING TAX INCENTIVES FOR THE PRODUCTION OF DENATURED ETHANOL WITH INCENTIVE PAYMENTS; REVISING STANDARDS FOR ELIGIBILITY FOR INCENTIVE PAYMENTS; PROVIDING FOR A PRODUCTION EXCEPTION FOR CERTAIN DISASTER DECLARATIONS; PROVIDING AN OCTANE REQUIREMENT FOR MOTOR FUEL WHEN PRODUCTION LEVELS OF DENATURED ETHANOL ARE ACHIEVED; AMENDING SECTIONS 15-70-201, 15-70-204, 15-70-221, 15-70-501, 15-70-502, 15-70-503, 15-70-511, 15-70-512, 15-70-513, 15-70-514, 15-70-521, 15-70-522, 15-70-523, 15-70-527, 17-6-317, 75-11-314, 82-15-103, 82-15-121, 82-15-122, AND 90-4-302, MCA; AND PROVIDING AN EFFECTIVE DATE AND TERMINATION DATES."

This proposed legislation would encourage the production of gasohol and denatured ethanol. The raw materials for the production of gasohol and ethanol are agricultural based products and this would be a value-added use of these materials. I provided testimony is support of this proposed legislation.

HB 655: "AN ACT CREATING AN INCUMBENT WORKER TRAINING ACT FOR MONTANA WORKERS; CREATING A POLICY AND APPEALS COMMITTEE; ESTABLISHING DUTIES FOR THE COMMITTEE AND FOR THE DEPARTMENT OF LABOR AND INDUSTRY; PROVIDING CRITERIA FOR GRANT ELIGIBILITY, APPLICATION PROCEDURES, CONTRACTS, AND ELIGIBLE TRAINING PROVIDERS; AUTHORIZING REVIEW PROCEDURES AND RULEMAKING; NAMING ONE-STOP CENTERS TO OVERSEE GRANT IMPLEMENTATION; CREATING A STATE SPECIAL REVENUE ACCOUNT; MAKING INCUMBENT WORKER TRAINING ELIGIBLE FOR ADULT EDUCATION FUNDING; AMENDING SECTION 20-7-704, MCA; AND PROVIDING AN EFFECTIVE DATE."

The purpose of this proposed legislation is to: (a) meet the training needs of existing workers in businesses employing 20 or fewer workers in this state at any one location but not more than 50 workers statewide; (b) provide training for Montana residents for jobs that might otherwise go unfilled or be filled by out-of-state residents; (c) assist local businesses in preserving existing jobs for Montana residents or in otherwise contributing to the long-term strength of the Montana economy, including raising the per capita income of Montana jobholders. This legislation, that would provide funds to train and educate incumbent workers, has the following potential benefits: (a) enhanced worker skills and productivity; (b) increased earning potential and employment opportunities for workers; and(c) strengthened, more competitive Montana businesses that help provide a more vital economy. I provided testimony is support of this legislation.

HB 756: "AN ACT ELIMINATING THE REQUIREMENT THAT AN APPLICANT MUST CREATE 10 NEW JOBS IN ORDER TO BE ELIGIBLE FOR A GRANT UNDER THE PRIMARY SECTOR BUSINESS WORKFORCE TRAINING ACT; AMENDING SECTION 39-11-202, MCA; AND PROVIDING AN EFFECTIVE DATE." This proposed legislation would eliminate the requirement that an applicant must create at least 10 new jobs in order to be eligible for a grant under the Primary Sector Workforce Training Act. In smaller communities in Montana, it is often difficult to create 10 new jobs. In many cases, creating 1 to 3 new jobs is more realistic. I provided testimony is support of this proposed legislation.

SJR 13: A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA REQUESTING AN INTERIM STUDY TO EVALUATE METHODS AND RECOMMEND WAYS TO ADD VALUE TO MONTANA AGRICULTURAL PRODUCTS THROUGH REDEVELOPMENT OF A FOOD PROCESSING INDUSTRY; AND REQUIRING THAT THE FINAL RESULTS OF THE STUDY BE REPORTED TO THE 61ST LEGISLATURE. The purpose of this Senate Joint Resolution is self-explanatory. I provided testimony is support of this proposed legislation.

During Week Eight of the 2007 Legislative Session, attended legislative hearings to monitor the following bills:

HB 634: "AN ACT INCREASING THE AMOUNT OF BONDS AND NOTES THAT THE FACILITY FINANCE AUTHORITY MAY ISSUE; AMENDING SECTION 90-7-302, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

HB 561: "AN ACT REVISING COUNTY DEBT LIMITS; OUTLINING THE INFORMATION TO BE INCLUDED IN A BOND QUESTION SUBMITTED TO THE ELECTORS; REQUIRING TWO-THIRDS APPROVAL FOR THE ISSUANCE OF THE BONDS OR INCURRENCE OF OTHER INDEBTEDNESS EXCEEDING THE LIMITATION IF MORE THAN 30 PERCENT BUT LESS THAN 40 PERCENT OF THE QUALIFIED ELECTORS VOTE; AMENDING SECTIONS 7-7-2101, 7-7-2237, 7-14-2524, AND 7-14-2525, MCA; AND PROVIDING AN EFFECTIVE DATE."

HB 364: "AN ACT CREATING THE LIVESTOCK LOSS REDUCTION AND MITIGATION BOARD TO ADMINISTER PROGRAMS FOR THE MITIGATION AND REIMBURSEMENT OF LIVESTOCK LOSSES BY WOLVES; ESTABLISHING BOARD MEMBERSHIP, POWERS, DUTIES, AND REPORTING REQUIREMENTS; ESTABLISHING AN ACCOUNT ACCOUNTS AND A TRUST FUND TO FUND THE MITIGATION OF LIVESTOCK LOSSES BECAUSE OF WOLF PREDATION AND TO REIMBURSE LIVESTOCK OWNERS FOR LOSSES RELATED TO PREDATION BY WOLVES; TRANSFERRING MONEY TO THE WOLF PREDATION MITIGATION AND REIMBURSEMENT TRUST FUND; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

HJ 36: A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA URGING CONGRESS TO DE-COUPLE FEDERAL MINERAL ROYALTY REVENUE PAYMENTS FROM STATES TO COUNTIES WHEN CALCULATING PAYMENT IN LIEU OF TAX PAYMENTS.

SB 466: "AN ACT PROVIDING THAT ECONOMIC IMPACT STATEMENTS REQUESTED BY AN ADMINISTRATIVE RULE REVIEW COMMITTEE CONSIDER THE POTENTIAL IMPACT OF A RULE ON AFFECTED SMALL BUSINESSES; AND AMENDING SECTION 2-4-405, MCA."

HB 685: "AN ACT AUTHORIZING THE MONTANA FACILITY FINANCE AUTHORITY TO FINANCE CERTAIN PROJECTS FOR FOR-PROFIT OR NONPROFIT CORPORATIONS AND ORGANIZATIONS; PROVIDING FOR TAXATION OF THOSE PROJECTS; AMENDING SECTIONS 90-7-102 AND 90-7-104, MCA; AND PROVIDING AN EFFECTIVE DATE."

HB 715: "AN ACT REQUIRING A PORTION OF THE RESEARCH AND COMMERCIALIZATION EXPENDABLE TRUST BE USED FOR COAL RESEARCH AND DEVELOPMENT PROJECTS; AMENDING SECTIONS 90-3-1002 AND 90-3-1003, MCA; AND PROVIDING AN EFFECTIVE DATE."

HB 728: "AN ACT REQUIRING THE DEPARTMENT OF ENVIRONMENTAL QUALITY TO ENTER INTO TERM CONTRACTS FOR SERVICES TO EXPEDITE CERTAIN PERMIT APPLICATION REVIEWS; AMENDING SECTION 82-4-205, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

HB 476: "AN ACT PROVIDING A TAX CREDIT FOR IRREVOCABLE CAPITAL CONSTRUCTION CONTRIBUTIONS BY INDIVIDUALS, CORPORATIONS, SMALL BUSINESSES, AND ESTATES MADE TO A TAX-EXEMPT ORGANIZATION; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE, A RETROACTIVE APPLICABILITY DATE, AND A TERMINATION DATE."

SB 483"AN ACT LIMITING THE USE OF TAX INCREMENT FINANCING TO URBAN RENEWAL; PROVIDING THAT INDUSTRIAL DISTRICTS, TECHNOLOGY DISTRICTS, AND AEROSPACE TRANSPORTATION AND TECHNOLOGY DISTRICTS MAY CONTINUE TO USE TAX INCREMENT FINANCING IF THE DISTRICTS WERE USING TAX INCREMENT FINANCING PRIOR TO THE EFFECTIVE DATE OF THIS ACT; AMENDING SECTIONS 7-15-4282, 7-15-4283, 7-15-4284, 7-15-4288, 7-15-4290, 7-15-4295, 7-15-4296, 7-15-4298, 7-15-4299, AND 7-15-4301, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

HB 684: "AN ACT GENERALLY REVISING THE LAWS GOVERNING IMPACT FEES; REVISING DEFINITIONS; REVISING HOW COUNTIES, CITIES, TOWNS, AND CONSOLIDATED LOCAL GOVERNMENTS IMPOSE IMPACT FEES UPON NEW DEVELOPMENT TO FUND PUBLIC FACILITIES' CAPITAL IMPROVEMENT NEEDS; REVISING THE NEEDS ASSESSMENT USED BY GOVERNMENTAL ENTITIES COLLECTING IMPACT FEES; REVISING METHODS FOR COLLECTING AND CREDITING OR REFUNDING IMPACT FEES; REVISING THE COMPOSITION OF AN IMPACT FEE ADVISORY COMMITTEE; AMENDING SECTIONS 7-6-1601, 7-6-1602, 7-6-1603, AND 7-6-1604, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."

SB 493: "AN ACT ESTABLISHING A STATE SPECIAL REVENUE ACCOUNT TO BE USED FOR FUNDING THE FOUR-LANE HIGHWAY ALONG U.S. HIGHWAY 2; ALLOCATING CERTAIN OIL AND GAS REVENUE TO THE STATE SPECIAL REVENUE ACCOUNT; AND AMENDING SECTIONS 15-36-331 AND 60-2-133, MCA."

HB 280: "AN ACT REVISING THE VOTE REQUIREMENTS FOR IMPOSING IMPACT FEES FOR A FACILITY LOCATED IN A DISTRICT THAT CROSSES COUNTY BOUNDARIES; AMENDING SECTION 7-6-1601, MCA; AND PROVIDING AN EFFECTIVE DATE."

HJR 39: A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA REQUESTING AN INTERIM STUDY ON THE ECONOMIC BENEFITS OF PURSUING COMMERCIALIZATION PROJECTS WITH EXISTING RESEARCH UNITS WITHIN THE MONTANA UNIVERSITY SYSTEM.